I have been asked by the matrimonial department to point out any pitfalls with the following scheme: H & W divorcing. They own a working farm. There is a farmhouse, outbuildings and land. W wants a share of proceeds of sale of house only, not the rest of the farm as they want to leave this to their sons to farm after death of H. The idea is to sell the farmhouse and divide the proceeds and then for the rest of the farm to be transferred to sons subject to H having a lease to farm the land until his death. APR would be claimed on the lifetime gift of the farm to the sons. If H then continues to farm the land until he dies would this be deemed to be a GROB and if so would his executors be able to claim 100% APR on its value. If he pays a rent for the farm then would this solve the GROB issue?
Phoenix Legal Group